Ether Price Continues to Probe Bearish Trend Line

Ether price tested yesterday’s highlighted bearish trend line on the hourly chart of ETH/USD, and failed to break it.

The pair moved lower, but remained above the $11.00-$10.80 support.

A breakout is near, as the trend line is moving down and range is shrinking on the hourly time frame.

Technically, the indicators on the hourly chart looks exhausted and pointing towards a break going forward.

ETH/USD Heading Towards a Break

Yesterday, I highlighted a bearish trend line on the hourly chart of ETH/USD, and pointed out its importance. It continued to act as a resistance for more upsides, and stopped ETH gains on a couple of occasions.

There were a few spikes, but the Ether buyers failed to overcome selling pressure near the trend line resistance. The last hourly candle clearly shows a rejection, which is a warning sign for bulls. If the trend line continues to act as a barrier, then the chances of a breakdown are very high.

On the downside, I pointed out a crucial support at $11.00-$10.80, which is still intact. However, the range between the trend line and stated support is shrinking, which may finally clear the way for the next move in ETH/USD.

The pair is slowly and steadily grinding lower, and it is visible on the 12-hours chart as well. The last 4-5 candles (H12) are all bearish with a small body. There is also a bearish trend line on the same chart, acting as a resistance on the upside.

In my view, there may be a downside thrust to fill all buy orders before the price can recover. The price can even spike below the $10.80 support, but a daily close in that case would matter a lot. It should remain above $10.80 if it has to recover going forward.

Important Resistance Levels

$11.40 and $11.60

Important Support Levels

$11.00 and $10.80

Hourly RSI

The RSI technical indicator is struggling to close above the 50 level, which is a negative sign.

Hourly MACD

The MACD is placed in the bearish zone and pointing downside move.

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